General Motors Co. said it is recalling another 2.4 million vehicles, making it the auto maker’s 29th recall so far this year.
As a result of the latest recalls, GM (NYSE:GM) expects to take $200 million more in recall-related charges in the second quarter, bringing the period’s total to $400 million.
The latest recalled cars include:
–1,339,355 Buick Enclave, Chevrolet Traverse, GMC Acadia full-size crossovers from the 2009-2014 model years and Saturn Outlooks from 2009-2010 because front safety lap belt cables can fatigue and separate over time.
–1,075,102 of the previous generation 4-speed automatic transmission Chevrolet Malibu from the 2004-2008 model years and Pontiac G6 from the 2005-2008 model years because of a shift cable that could wear out over time, resulting in mismatches of the gear position indicated by the shift lever.
–1,402 Cadillac Escalades and Escalade ESVs from the 2015 model year because an insufficiently heated plastic weld that attaches the passenger side air bag to the instrument panel assembly could result in a partial deployment of the air bag in the event of a crash.
Forward! Obama must be proud of his accomplishment, his state-run auto concern, government motors (GM) is a life-threatening catastrophic failure, just like every, every, every other thing Obama has done or touched.
Following Latest Recall Shocker, GM Has Recalled 56% More Cars In 2014 Than It Sold In 2013
Submitted by Tyler Durden on 05/20/2014
Over the weekend we titled our summary of GM’s unprecedented avalanche of recalls so far in 2014 – the year in which the company’s criminal practice of covering up its faulty products became a congressional scandal – as follows: “GM Set To Surpass Total Recall Record This Year.” Three days later we are happy to report that while Detroit, we not only have a big recall problem, we also have a new record, after moments ago GM just announced another 4 recalls affecting 2.4 million cars. This brings the total number of vehicle investigations since the start of the year to 35, and with today’s four latest fiascos, has initiated a whopping 29 recalls. More importantly, this also means that the number of domestic recalls rises to 13.6 million, smashing the previous record of 11.8 million recalls in 2004, and brings the number of global recalls to 15.2 million: or a stunning 56% greater than the 9.7 million cars GM sold in all of 2013!
Following Latest Recall Shocker, GM Has Recalled 56% More Cars In 2014 Than It Sold In 2013
Submitted by Tyler Durden on 05/20/2014 11:45 -0400
They don’t call them Government Motors for nothing.
Over the weekend we titled our summary of GM’s unprecedented avalanche of recalls so far in 2014 – the year in which the company’s criminal practice of covering up its faulty products became a congressional scandal – as follows: “GM Set To Surpass Total Recall Record This Year.” Three days later we are happy to report that while Detroit, we not only have a big recall problem, we also have a new record, after moments ago GM just announced another 4 recalls affecting 2.4 million cars.
This brings the total number of vehicle investigations since the start of the year to 35, and with today’s four latest fiascos, has initiated a whopping 29 recalls. More importantly, this also means that the number of domestic recalls rises to 13.6 million, smashing the previous record of 11.8 million recalls in 2004, and brings the number of global recalls to 15.2 million: or a stunning 56% greater than the 9.7 million cars GM sold in all of 2013!
As was expected, as part of today’s most recent recall, GM took yet another charge, this time for $200 million. But don’t worry: hedge fund pandering sell-side analysts everywhere will be sure to addback these recurring “non-recurring” charges to EPS and all shall be well.
Here are the highlights from today’s announcement:
In a continuing effort to quickly address emerging safety issues, General Motors announced today it is recalling about 2.42 million vehicles in four separate U.S. recalls. The recalls are for:
•1,339,355 Buick Enclave, Chevrolet Traverse, GMC Acadia full-size crossovers from the 2009-2014 model years and Saturn Outlooks from 2009-2010 because front safety lap belt cables can fatigue and separate over time. In a crash, a separated cable could increase the risk of injury to front seat passengers.
•1,075,102 of the previous generation 4-speed automatic transmission Chevrolet Malibu and from the 2004-2008 model years and Pontiac G6 from the 2005-2008 model years because of a shift cable that could wear out over time, resulting in mismatches of the gear position indicated by the shift lever.
•1,402 Cadillac Escalades and Escalade ESVs from the 2015 model year because an insufficiently heated plastic weld that attaches the passenger side air bag to the instrument panel assembly could result in a partial deployment of the air bag in the event of a crash.
•58 Chevrolet Silverado HD and GMC Sierra HD full-size pickups from the 2015 model year because retention clips attaching the generator fuse block to the vehicle body can become loose and lead to a potential fire.
GM has added 35 product investigators since the beginning of 2014, and, including those announced today, has initiated 29 safety and non-compliance recalls in the U.S. so far this year. Two of the recalls involve fewer than 100 vehicles.
* * *
GM stopped sale of the 2015 Escalade and Escalade ESV and sent overnight letters, called and emailed the 224 customers who had taken delivery of the vehicles and instructed them to not let occupants sit in the front passenger seat until the vehicle has been serviced. GM knows of no crashes or injuries associated with the Escalades.
* * *
GM expects to take a charge of up to approximately $400 million in the second quarter, primarily for the cost of recall-related repairs announced in the quarter. This amount includes a previously disclosed $200 million charge for the five recalls announced May 16.
Here is the full list of recalls announced just in 2014. Considering we are barely five months into the year, expect this to grow substantially by the end of the year.
“The numbers for the Affordable Care Act (ACA), despite its good intentions, do not add up. I’m talking about the number of Americans who will actually have health insurance now that the ACA, also known as Obamacare, is in effect, as compared to the number who won’t be covered due to cancellations.”
“Why walk through the shadow of death when you can drive” -John Oliver, GM quote
Narrator: A new car built by my company leaves somewhere traveling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside. Now, should we initiate a recall? Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don’t do one.
Business woman on plane: Are there a lot of these kinds of accidents?
Narrator: You wouldn’t believe.
Business woman on plane: Which car company do you work for?
Just think American car companies had a complete lock on the auto industry. They just pissed away their lead. The big three lost market share to Europe / Japan EVERY YEAR since something like 1975.
They consistently put out crap and then we had to bail out GM and Chrysler. All they can do is put out updated models from the 1970′s (like Camaro, Charger) which are just flash. They have no new ideas. Even the Buick commercial touts that the car was designed in Germany.
You can tell what they think of their products: Instead of the companies being headed up by people who like cars, they have CEO’s who used to head up HP.
Submitted by Tyler Durden on 05/21/2014 08:35 -0400
Just after 7:30 am this morning, we reported on what we thought was one of the most important news of the day:
No GM recall announced so far today
— zerohedge (@zerohedge) May 21, 2014
Sadly, 30 minutes later this tweet is no longer accurate when moments ago GM just announced its record, 30th, recall of the year.
General Motors is adding 218,000 subcompact cars to its growing list of recalled vehicles.
The new recall covers certain Chevrolet Aveo cars from the 2004 through 2008 model years. GM says the daytime running light module in the dashboard center stack can overheat, melt and cause fires.
The recall posted Wednesday on a U.S. government website is GM’s 30th this year. It brings the total number of vehicles recalled by the company since January to 13.8 million, breaking its own annual record.
Recall documents didn’t say if the problem has caused any fires or injuries. GM says it will provide a plan to fix the problem as soon as possible.
The high number of recalls is fallout from a deadly ignition switch problem that is responsible for at least 13 deaths.
This brings the total recalls for the year to 15.4 million vehicles or 72% more than GM sold in all of 2013.
At this point not even the jokes are funny so we will just leave it with the updated table of GM recalls YTD. At this rate, Microsoft will need to add more rows to its worksheet: the stock 1,048,576 won’t be enough.
The good news, however, is that as GM prepares to recall double the cars it sold in 2013, all those dealer lots full of unsellable cars will promptly disappear deep in the bowels of GM factories, never to be seen again.
GM Sure Recalled A Lot Of Cars Right After The Feds Sold Their Shares
May 21, 2014 By Sean Davis
According to recent reports, GM just recalled another 2.4 million vehicles this week, bringing the total number of recalled GM vehicles this year to a record 13.6 million. USA Today got right to the point when it asked, “Are there any GM cars that haven’t been recalled?”
The rapid pace of General Motors recalls is intentional, as the company delves into its records to find and purge lurking safety issues.
But it’s unsettling, leaving an impression GM produces unsafe vehicles and, in some cases, makes dumb mistakes. It recalled 8,208 of its 2014 cars on May 7, for example, because they might have rear brakes on the front wheels.
On Tuesday, GM issued four more recalls totaling 2.42 million vehicles in the U.S. And GM says it has informed regulators about two more recalls imminent but not yet announced. The latest batch includes safety belt, air bag, transmission and electrical issues in a range of midsize sedans, full-size crossovers and SUVs, and pickups.
And the recalls aren’t over ticky-tack problems like a sticky chair recliner button or a window that doesn’t always roll down. Many of the malfunctions are deadly serious. In over 1,400 recalled 2015 Cadillac Escalades, poor welding resulted in a passenger side air bag that might not fully deploy in the event of a crash. Then there’s the infamous faulty ignition switch, which led to the recall of 2.6 million Chevrolet Cobalts. That faulty part has now been linked by GM to 13 deaths.
That’s all terrible, you might say, but at least GM acted as soon as it knew there was a problem. Because it’s not like the company would sit on the information and do nothing about it, right? Right?
Not so much.
GM knew about serious problems with the ignition switch for years, going back to at least 2007. At that time, GM had hard data from multiple crashes showing that some of its ignition switches had failed to function properly. The U.S. government officially bailed out the automaker in December of 2008. Throughout the five-year period of U.S. government ownership, nothing was done to address the deadly switch. According to one timeline of events, GM’s new CEO, Mary Barra, claims she did not even learn of the problem until December of 2013, which just so happens to be when the federal government sold its final shares of GM stock (at a loss of $10 billion, naturally).
Even though the company had data demonstrating a faulty ignition switch for years, it didn’t initiate a full investigation or recall until February of 2014, two months after the government sold its stake in the company. The National Highway Transportation Safety Administration (NHTSA) didn’t initiate a full investigation of the issue until later that month, even though the U.S. government had owned the company for 5 years. The Justice Dept. also showed up late to the party, confirming that same month that it had initiated a criminal probe into the matter.
GM disclosed that its recalls this year would cost the company $1.7 billion.
Taxpayers, drivers, and investors who assumed the government would never fail to disclose rampant safety problems in a company it owned can rest easy, though. Instead of investigating fatally flawed GM components while the U.S. government was the company’s largest single owner, the NHTSA was busy harassing Toyota — one of GM’s top competitors — for an alleged malfunction that led to “unintended acceleration” in Toyota vehicles. Toyota was fined and eventually bullied into recalling 8 million vehicles over the issue.
And what was the final result of the NHTSA investigation?
Many drivers may have confused the gas and brake pedals a problem that may account for “the vast majority” of the unintended acceleration incidents the agency investigated, NHTSA deputy administrator Ron Medford said at Tuesday’s NHTSA press briefing.
“What mostly happened was pedal misapplication where the driver stepped on the gas instead of the brake or in addition to the brake,” Medford said.
Our nation is in the safest and most ethical of hands.